Fitch Ratings Services recently released an updated credit report on the Guam Power Authority’s (GPA) revenue bonds. The rating agency upgraded GPA’s rating to “BBB” and its outlook for the public power utility is Stable.
GPA noted that Fitch highlighted some of the following factors in assigning the rating upgrade:
- GPA’s being the sole provider of electric service on Guam and its strong service area characteristics supported by the U.S. military presence;
- Guam’s steadily growing economy and gross domestic product in recent years contributing to declining unemployment, solid household income and customer growth;
- The 1% steady growth of customer accounts since 2014;
- Tourism and the U.S. military contributing to Guam’s economy and electricity demand on the island; and
- GPA’s commitment to implement its 2016 integrated resource plan as a means to modernize its fleet, provide fuel diversity and comply with environmental regulations set by the U.S. Environmental Protection Agency.
“This improved investment grade rating is a positive confirmation of GPA’s continuous operational improvements and commitment to strengthen its financial health,” said GPA General Manager John Benavente, P.E. “This is definitely great news for all ratepayers, the Authority and our island,” Benavente added.
For recent news about other public power utilities receiving ratings upgrades, click here.